Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part‐time at Rosebank College. Willow Traders uses the perpetual inventory system to record inventory transactions. Mark‐up is 20% on cost on all good sold. VAT can be ignored on all transactions. The following transactions took place in the month of August 2020: NO DATE TRANSACTION 2.1 1 Owner contributed a delivery vehicle valued at R200 000 2.2 4 Purchased goods for cash R10 000 and received a trade discount of 5% 2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers 2.4 15 Paid R300 cash for an advert in the local newspaper 2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees are sold at R75 each
Willow Traders is a nursery in Diepkloof. It is owned by Violet who is studying part‐time at
Rosebank College. Willow Traders uses the perpetual inventory system to record inventory
transactions. Mark‐up is 20% on cost on all good sold.
VAT can be ignored on all transactions.
The following transactions took place in the month of August 2020:
NO DATE TRANSACTION
2.1 1 Owner contributed a delivery vehicle valued at R200 000
2.2 4 Purchased goods for cash R10 000 and received a trade discount of
5%
2.3 6 Sold 10 Pecan Trees at R50 each for cash to Lilly Rogers
2.4 15 Paid R300 cash for an advert in the local newspaper
2.5 20 Violet took a rose tree as a birthday present for her sister. Rose trees
are sold at R75 each
question- AOL
Analyse each of the above transactions and complete the table as follows:
Example: Paid R200 for Telephone Account
NO ACCOUNT
DEBITED
ACCOUNT
CREDITED
ASSETS OWNER’S
EQUITY
LIABILITIES
Example Telephone Bank ‐200 ‐200
Show the double-entry (debit and credit general ledger names), as well as the
effect on the
provided. Ensure that you use the + and – signs to show the effect on the
equation as marks will be allocated for these.
Round to the nearest ran
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